Monte Titoli Plans Extension of Tri-party Collateral Management Service

Monte Titoli, the Italian central securities depositary (CSD), is planning to launch an extension of its tri-party collateral management service, X-COM, enabling it to provide full collateral coverage of the Italian market.
By Joe Parsons(2147488729)
Monte Titoli, the Italian central securities depositary (CSD), is planning to launch an extension of its tri-party collateral management service, X-COM, enabling it to provide full collateral coverage of the Italian market.

According to a market notice from Monte Titoli, which is owned by the London Stock Exchange Group (LSEG), on March 9 it will extend the service to include management of GC (general collateral) repo and pledge contracts traded bilaterally.

“By accessing this new functionality, our participants will be able to mandate Monte Titoli for all the processes inherent with the selection, valuation, integration and restitution of collateral,” the CSD says.

“Clients that act as liquidity providers will be guaranteed constant coverage of the exposure thanks to continuous top up of collateral. Meanwhile, clients accessing the liquidity pool will maintain full control over the assets posted as collateral, with the possibility to recall them and dispose of them in real time.”

Furthermore on May 11, Monte Titoli is also planning to further extend X-COM by allowing participants to include operations in the markets guaranteed by CC&G, LSEG’s Italian clearing house.

This will enable participants to use a wide range of securities to collateral for trades guaranteed by the CCP.

Monte Titoli launched X-COM in September 2012 for bank’s treasury and operations departments, initially for the allocation of collateral into the pooling account of the Bank of Italy.

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